In 2010, total chapter 13 bankruptcy filings increased by 8 percent from 2009.  Last year, a total of 438,913  chapter 13 petitions were filed in the United States.  In 2009, only 407,000 cases of chapter 13 were filed.

According to the U.S. Court System, chapter 13 filings were only topped by chapter 7 bankruptcy filings.  In 2010, 1.1 million chapter 7 petitions were filed across the country.

Chapter 13 bankruptcy allows individuals a chance to restructure their finances under the supervision of a federal bankruptcy court.  Also, individuals may be able to avoid home foreclosure with this option for bankruptcy protection.

Contact the Galveston chapter 13 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 today, if you or someone you know would like to speak with an experienced bankruptcy lawyer about chapter 13 bankruptcy protection.

Supreme Court Justice Elena Kagan, the court’s newest member, gave her first court opinion yesterday when the Supreme Court ruled that people filing for Chapter 13 bankruptcy are not eligible for a car ownership deduction unless they are still making monthly payments toward the vehicle.

The case involved a man who outright owned his Toyota Camry, however still tried to claim a car ownership deduction.  When calculating disposable income, the court ruled that only monthly payments that are applicable, meaning still being incurred, are eligible for deduction.  For this reason, the man, who was no longer making any loan or lease payments on the vehicle, is not eligible for a deduction.

If you or someone you know has questions about eligibility for Chapter 13 bankruptcy, contact the La Porte Chapter 13 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 to learn more.

Officials from the U.S. Justice Department Trustee Program announced last month that they will be enforcing more meticulous inspections of foreclosure documents and Chapter 13 bankruptcy filings after they noticed an increase in documentation errors made by banks.  The most common errors found include inflating fees and lenders failing to continue foreclosure actions against borrowers.

Although chapter 13 bankruptcys allow consumers to keep their house and extend their mortgage, while the filing is being reviewed individuals are required to continue to meet mortgage payments.  Many executives in the banking industry have acknowledged that paperwork mistakes and documentation errors can happen easily.  Homeowners are concerned about these errors as it could make them lose their chance of reworking a mortgage and keeping their home.

If you are considering filing for chapter 13 bankruptcy but have questions, contact the Galveston Chapter 13 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 today.